Universal registration document and annual financial report 2019

2019 Universal registration document and annual financial report - BNP PARIBAS150

4 Consolidated finanCial statements for the year ended 31 deCemBer 2019

1.e.8 Financial liabilities and equity instruments 168

1.e.9 Hedge accounting 168

1.e.10 Determination of fair value 169

1.e.11 Derecognition of financial assets and financial liabilities 170

1.e.12 Offsetting financial assets and financial liabilities 170

1.f Accounting standards specific to insurance activities 170

1.f.1 Profit and loss account 171

1.f.2 Financial investments of insurance activities 171

1.f.3 Technical reserves and other insurance liabilities 172

1.g Property, plant, equipment and intangible assets 173

1.h Leases 174

1.h.1 Group company as lessor 174

1.h.2 Group company as lessee 174

1.i Non-current assets held for sale and discontinued operations 174

1.j Employee benefits 175

1.k Share-based payments 175

1.l Provisions recorded under liabilities 176

1.m Current and deferred tax 176

1.n Cash flow statement 177

1.o Use of estimates in the preparation of the financial statements 177

Note 2 Effect of IFRS 16 first time adoption 178

Note 3 Notes to the profit and loss account for the year ended 31 December 2019 179

3.a Net interest income 179

3.b Commission income and expense 180

3.c Net gain on financial instruments at fair value through profit or loss 181

3.d Net gain on financial instruments at fair value through equity 182

3.e Net income from insurance activities 182

3.f Net income from other activities 182

3.g Other operating expenses 183

3.h Cost of risk 183

3.i Corporate income tax 187

Note 4 Segment information 188

Note 5 Notes to the balance sheet at 31 December 2019 192

5.a Financial instruments at fair value through profit or loss 192

5.b Derivatives used for hedging purposes 193

5.c Financial assets at fair value through equity 196

5.d Measurement of the fair value of financial instruments 197

5.e Financial assets at amortised cost 206

5.f Impaired financial assets (stage 3) 207

5.g Financial liabilities at amortised cost due to credit institutions and customers 208

5.h Debt securities and subordinated debt 209

5.i Financial investments of insurance activities 211

5.j Technical reserves and other insurance liabilities 213

5.k Current and deferred taxes 213

5.l Accrued income/expense and other assets/liabilities 214

5.m Equity-method investments 215